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Logicom Raises Gross Profit As IT Sales Decline And Costs Fall

by THEFUTURE.TEAM

September 16, 2026

Logicom’s distribution sales rose 0.4% in the first half of 2026, supported by stronger activity in Cyprus, Greece and Jordan. This was partly offset by a 14% decline in software and integrated IT solutions, mainly due to weaker sales in Cyprus and Greece.

Reported sales fell 16.5% to €409.11 million from €489.95 million. Under IFRS 15, Logicom acts as an agent in some software license and cloud transactions, meaning only gross profit is recognized as sales.

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Despite lower reported sales, gross profit increased to €45.12 million from €43.83 million. Gross margin on reported sales improved to 11.0% from 8.9%, reflecting a stronger sales mix.

Lower Costs Support Results

Administrative expenses fell 5.2% to €29.51 million, while expected credit losses declined to €80,818 from €164,454. Finance costs dropped 41.2% to €2.84 million, mainly due to lower borrowing and reduced dollar and euro borrowing rates.

Other income fell to €4.42 million from €5.82 million, partly because the previous year included €762,462 in insurance compensation received by Logicom Italia. Foreign exchange movements also resulted in a €710,123 loss, compared with a €2.43 million gain a year earlier.

Acquisition Adds €8.88 Million In Negative Goodwill

The first-half results included €8.88 million in negative goodwill from Logicom’s acquisition of AGI-Cypre Property 45 Limited on Jan. 29, 2026.

Logicom acquired a 31.8% stake through Najada Holdings Limited and a further 26.3% through Demetra Holdings Plc. The negative goodwill reflects the difference between the purchase price and the fair value of the acquired company’s net assets.

Debt Declines As Outlook Remains Focused On Growth

Cash and cash equivalents, after bank overdrafts, stood at €417.77 million at the end of June, compared with €443.19 million at the end of 2025. Short-term loans fell to €66.77 million from €78.43 million, while long-term loans declined to €5.62 million from €17.23 million.

Logicom said ongoing conflicts in the Middle East and Europe continued to create uncertainty. Still, profitability from ordinary activities improved, supported by higher gross profit, lower administrative and credit costs, and lower taxation.

Management said its 2026 priorities remain expanding in existing and new markets while maintaining the group’s financial position. The company said first-half results were in line with board expectations.

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Cyprus’ Strong Youth Employment Rate Still Does Not Guarantee Early Independence

by THEFUTURE.TEAM

September 16, 2026

Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

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Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.